Real Estate Investments Zambia (LUSE: REIZ) reported a 20% year-on-year increase in gross rental income to K42 million in financial year (FY) 2014:
British American Tobacco Zambia (LUSE: BATZ) reported a 28% year-on-year decrease in net profit to K47 million in financial year (FY) 2014. Earnings Per Share (EPS) was down to K0.22 (K0.31 in 2013):
Lafarge Zambia (LUSE: LAFARGE) reported a 25% year-on-year increase in net profit to K424 million in financial year (FY) 2014. Earnings Per Share (EPS) was up to K2.12 (K1.69 in 2013):
VAT rule 18 amended
Effective February 23 2014, VAT ‘rule 18’ is set to be amended to include import documents from a transit country as sufficient proof of export as well as scrapping the provision requiring export proceeds to be deposited in Zambian accounts (proof of payment by an intermediary should suffice). For transactions prior to February 23, exporters will be required to fulfil the old rules. [KPMG Zambia release on 20.02.2015]
The Zambian Kwacha has fallen by 4.6% vs US dollar today to trade at K7 (spot) per USD. Does BoZ have more in their tool-box? They sold $251m to support it in H2 2014.
Let's see what Dr. K (Denny Kalyalya) has up his sleeve for his first challenge. But long term, BoZ can't win this fight by themselves.
It will be interesting to see what the figures for Balance of Trade are for January and February 2015. 3 deficits in a row?
With low economic diversification to date, does Zambia REALLY deserve strong Kwacha? Food for thought
Zambia’s newly elected President Edgar Lungu, who has promised lower interest rates, replaced the central bank governor a day after he held borrowing costs at a record high. Lungu named Denny Kalyalya, previously deputy governor, to take over from Michael Gondwe, who had been in the post since 2011, according to an e-mailed statement on Friday. Read more....
The Central Bank kept the policy rate unchanged at 12.5% until the next decision in May 2015. They cited the slowdown in China’s growth as a key component in the policy rate decision because it has a negative impact on global copper prices which in turn has a downward effect on the Kwacha and consequently inflation. This is the first policy rate decision since last month’s election.
Sixty-nine people with links to Zambia were among the 100,000 clients of banking giant HSBC’s Swiss subsidiary holding $48.3 million (K314 M) in their accounts. This is according to data from a former IT employee of HSBC’s Swiss subsidiary who hacked into client accounts and took almost 60,000 files before fleeing to France. The US-based International Consortium of Investigative Journalists (ICIJ) has summarized this data on an interactive global map on their website – here are the charts related to Zambia:
Thursday’s T/bill auction undersubscribed by 53%
The Government raised K422.9 million out of a targeted K900 million at the third Treasury bill (T/bill) auction of 2015. The auction was under-subscribed by 53% with the 364 day T/bill receiving the highest amount of bids:
Zambeef (LUSE: ZAMBEEF) announced that it is set to sell its Edible Oils unit ‘Zamanita’ to Cargill Holdings BV in an all-cash deal for K167 million ($25.7 M). The cash sum will be adjusted for estimated closing working capital less estimated net financial debt. The deal is scheduled for completion at the later of 1 May 2015 or first day of the month following the satisfaction of conditions of the transaction. Pangaea Securities is the sponsoring broker and adviser on the deal. Zamanita is one of the largest edible oils plants in Zambia with a crushing capacity of 100,000 MT of oil seed.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *